Brookfield Business Partners L.P.
Brookfield Business Partners L.P. Fundamental Analysis
Brookfield Business Partners L.P. (BBU) shows weak financial fundamentals with a PE ratio of -203.58, profit margin of -0.05%, and ROE of -0.60%. The company generates $27.7B in annual revenue with weak year-over-year growth of 2.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BBU's fundamental strength across five key dimensions:
Efficiency Score
WeakBBU struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBU trades at attractive valuation levels.
Growth Score
WeakBBU faces weak or negative growth trends.
Financial Health Score
ModerateBBU shows balanced financial health with some risks.
Profitability Score
WeakBBU struggles to sustain strong margins.
Key Financial Metrics
Is BBU Expensive or Cheap?
P/E Ratio
BBU trades at -203.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BBU's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Brookfield Business Partners L.P. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.28 times EBITDA. This is generally considered low.
How Well Does BBU Make Money?
Net Profit Margin
For every $100 in sales, Brookfield Business Partners L.P. keeps $-0.05 as profit after all expenses.
Operating Margin
Core operations generate 15.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-0.60 in profit for every $100 of shareholder equity.
ROA
Brookfield Business Partners L.P. generates $-0.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brookfield Business Partners L.P. produces operating cash flow of $3.23B, showing steady but balanced cash generation.
Free Cash Flow
Brookfield Business Partners L.P. produces free cash flow of $1.17B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.14 in free cash annually.
FCF Yield
BBU converts 41.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-203.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
19.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.00
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How BBU Stacks Against Its Sector Peers
| Metric | BBU Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -203.58 | 26.36 | Better (Cheaper) |
| ROE | -0.60% | 1262.00% | Weak |
| Net Margin | -0.05% | -30224.00% (disorted) | Weak |
| Debt/Equity | 19.07 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.83 | 8.96 | Neutral |
| ROA | -0.02% | -1491455.00% (disorted) | Weak |
BBU outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brookfield Business Partners L.P.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
304.03%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
122.41%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-116.23%
Industry Style: Cyclical, Value, Infrastructure
Declining